H. B. 3322
(By Delegates Miley and R. Thompson)
[Introduced March 25, 2005; referred to the
Committee on Banking and Insurance then the Judiciary.]
A BILL to amend and reenact §33-2-16, §33-2-17 and §33-2-18 of the
Code of West Virginia, 1931, as amended, all relating to the
Office of Consumer Advocacy.
Be it enacted by the Legislature of West Virginia:
That §33-2-16, §33-2-17 and §33-2-18 of the Code of West
Virginia, 1931, as amended, be amended and reenacted, all to read
as follows:
ARTICLE 2. INSURANCE COMMISSIONER.
§33-2-16. Office of Consumer Advocacy established; appointed by
Governor; Director of Consumer Advocacy; promulgation
of rules.
There is hereby created within the agency of the Insurance
commissioner the Office of Consumer Advocacy. The Director of the
Office of Consumer Advocacy shall be a full-time position and shall
be appointed by the commissioner Governor, with the consent of the Senate for a term of four years, roughly to coincide with the term
of the Governor and may be discharged only for failure to carry out
the duties of the office or for other good and sufficient cause.
The Insurance Commissioner shall provide office space,
equipment and supplies for the office completely separate and apart
from that of the other departments of the Insurance Commission.
The Director shall promulgate rules pursuant to article three,
chapter twenty-nine-a of this code, in order to effect the purposes
of this section, section seventeen, and section eighteen of this
article.
On or before the first day of each regular session of the
Legislature, the Director shall file with the Governor, the clerk
of the Senate and the clerk of the House of Delegates, a report
detailing the actions taken by the Division in the preceding
calendar year.
§33-2-17. Authority of Office of Consumer Advocacy; retroactive
effect of authority prohibited.
(a) In addition to the authority established under the rules
promulgated by the Director, the Office of Consumer Advocacy is
authorized to:
(1) Institute, intervene in, or otherwise participate in, as
an advocate for the public interest and the interests of insurance
consumers, proceedings in state and federal courts, before
administrative agencies, or before the Health Care Cost Review Authority, concerning applications or proceedings before the Health
Care Cost Review Authority or the review of any act, failure to
act, or order of the Health Care Cost Review Authority;
(2) At the request of one or more policyholders, or whenever
the public interest is served, to advocate the interests of those
policyholders in proceedings arising out of any filing made with
the Insurance Commissioner by any insurance company or relating to
any complaint alleging an unfair or deceptive act or practice in
the business of insurance;
(3) Institute, intervene in, or otherwise participate in, as
an advocate for the public interest and the interests of insurance
consumers, proceedings in state and federal courts, before
administrative agencies, or before the Insurance Commissioner,
concerning applications or proceedings before the Commissioner or
the review of any act, failure to act, or order of the Insurance
Commissioner;
(4) Review and compile information, data and studies of the
reasonable and customary rate schedules of health care providers
and health insurers, for the purposes of reviewing, establishing,
investigating, or supporting any policy regarding health care
provider or insurance rates;
(5) Exercise all the same rights and powers regarding issuance
of subpoenas, examination and cross-examination of witnesses,
presentation of evidence, rights of appeal and other matters as any party in interest appearing before the Insurance Commissioner, or
the Health Care Cost Review Authority, or a court;
(6) Hire consultants, experts, lawyers, actuaries, economists,
statisticians, accountants, clerks, stenographers, support staff,
assistants, and other personnel necessary to carry out the
provisions of this section and sections sixteen and eighteen of
this article, which personnel shall be paid from special revenue
funds appropriated for the use of the office;
(7) Contract for the services of technically qualified persons
in the area of insurance matters to assist in the preparation and
presentation of matters before the courts, the Insurance
Commissioner, administrative agencies, or the Health Care Cost
Review Authority, which persons shall be paid from special revenue
funds appropriated for the use of the office;
(8) Make recommendations to the Legislature concerning
legislation to assist the office in the performance of its duties;
(9) Communicate and exchange data and information with other
federal or state agencies, divisions, departments, or officers, and
with other interested parties including, but not limited to, health
care providers, insurance companies, consumers or other interested
parties; and
(10) Perform other duties to effect the purposes of the
office.
(b) The provisions of this section do not apply to any filing made by an insurance company, or act or order performed or issued
by the Commissioner, or complaint filed by a policyholder with the
Commissioner prior to the thirtieth day of June, one thousand nine
hundred ninety-one. All proceedings and orders in connection with
these prior matters shall be governed by the law in effect at the
time of the filing, or performance or issuance of the act or order.
(c) The scope of authority granted under this section and
section sixteen of this article is restricted to matters related to
health care costs and health insurance policies, subscriber
contracts issued by organizations under article twenty-four of this
chapter, health care corporations under article twenty-five of this
chapter, health maintenance organizations under article
twenty-five-a of this chapter, contracts supplemental to health
insurance policies, and other matters related to health insurance
issues identified by rules of the commissioner promulgated under
section one of this article and chapter twenty-nine-a of this code.
§33-2-18. Funding and independence.
The Office of Consumer Advocacy shall be funded in an amount
to be appropriated by the Legislature from special revenue funds
separate from any other division of the Insurance Commission.
(a) The initial funding for the Office of the Consumer
Advocate for the fiscal year July first, two thousand five, through
June thirtieth, two thousand six, shall be in the amount
appropriated to the Insurance Commissioner for the Office of Consumer Advocate by the two thousand five Legislature.
(b) The current Director of Consumer Advocacy or such other
appointee of the Commissioner shall continue until the inauguration
of a Governor in January, two thousand nine, at which time the
Governor will appoint, with the consent of the Senate, a director
of consumer advocacy as shall each Governor thereafter. The new
Director of the Office of Consumer Advocacy will submit his or her
own request for appropriation for the next fiscal year separate
from that submitted on behalf of the rest of the Insurance
Commission.
The new Director of the Office of Consumer Advocacy shall, in
his or her sole discretion, make the selection of the hirees and
contractees referred to in subdivision six and seven of subsection
(a), section seventeen of this article.
NOTE: The purpose of this bill is to make the Office of
Consumer Advocacy independent of the Insurance Commission.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
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